Looks like a network of IOU. That’s why most bitcoiners don’t give a shit. At least lightning channels can be closed without functioning of any “members” “boards” “governance” that are mentioned in Liquid network. A L2 needs to be native.
Discussion
But you are ignoring the security of cold storage, with liquid network it is possible with Lightning it is not.
In addition, the rates for large quantities are higher in Lightning Network.
By building a reserve of course anything can be transferred instantly because it is just IOU. Why not build a robust gold reserve foundation and get back to gold standard? Liquid network doesn’t have to be bitcoin it can be anything. I see it as a more reliable reserve system. Bitcoin doesn’t need reserve.